CA AB2079

Requires skilled nursing facilities to spend a minimum of 85% of total non-Medicare health revenues on direct patient-related services, effective July 1, 2023.

Mandates facilities report annual revenues and direct care expenditures to the State Department of Health Care Services by June 30 each year, certified by an authorized official.

Authorizes the department to conduct audits every three years during Medi-Cal audits to verify compliance and identify overpayments for administrative costs and profits.

Requires non-compliant facilities to issue pro rata dividends or credits to the state and non-Medicare payers by September 30 each year, with administrative fines set at double the percentage of unpaid pro rata amounts.

Allows the department to withhold Medi-Cal payments from facilities that fail to disclose accurate direct and nondirect patient-related services cost information.